John Fahey: The eurozone's sluggish growth trails the US

Outlook for the eurozone economy remains clouded by trade tensions between the EU and the US and elevated global uncertainty

The economic recovery in the eurozone has been muted, with the currency bloc rebounding by less than half the rate of the US.

As the eurozone economy makes the turn for the second half of 2025, the background remains challenging, especially amid the heightened trade tensions between the EU and the US. 

Looking back over the last few years, the eurozone economy has struggled to generate any sustained growth momentum in the aftermath of the covid pandemic. The Russian invasion of Ukraine and the resulting energy price and supply shock were significant drags on the performance of its main economies, especially Germany and Italy.